Morgan Stanley Agents $200MM Hi-Crush Term Loan

Proppant and logistics solutions provider Hi-Crush Partners entered into a new $200 million senior secured term loan credit agreement, with Morgan Stanley Senior Funding acting as both administrative and collateral agent, and a new five-year $125 million revolving credit agreement, with Amegy Bank acting as administrative agent, issuing lender and swing line lender.

The new term loan replaces the Hi-Crush’s previous $200 million facility, extending maturity to December 2024 from April 2021. Borrowings under the new term loan will bear interest at a rate equal to, at Hi-Crush’s option, either (1) a base rate plus an applicable margin of 2.75% per annum or (2) a Eurodollar rate plus an applicable margin of 3.75% per annum, subject to a LIBOR floor of 1.00%. The new term loan was rated B3 by Moody’s Investor Service and B- by Standard and Poor’s Ratings Agency. Both base rate loans and Eurodollar loans are subject to a 0.25% rate increase during any period of time in which the Partnership does not have a public corporate family rating of B2 or better from Moody’s. Hi-Crush’s corporate ratings are B3 by Moody’s and B- by S&P.

The new five-year $125 million revolver replaces the company’s previous $75 million revolving credit facility, extending the maturity to December 2022 from December 2019. There were no borrowings under Hi-Crush’s prior revolving credit facility at the time of closing, and it has no indebtedness under its new revolving credit agreement.

“We are very pleased to complete these refinancing transactions on favorable terms, while extending our maturity profile and enhancing our financial flexibility,” said Laura C. Fulton, CFO of Hi-Crush. “We remain committed to maintaining a conservative balance sheet position, and the ongoing support of our lending group provides the platform necessary to continue investing in our business, while maximizing value to unitholders in 2018 and beyond.”